Question :
91. Magpie Corporation uses the total cost concept of product pricing. : 1251721
91. Magpie Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% rate of return on invested assets of $700,000.
Fixed factory overhead cost$38,700
Fixed selling and administrative costs7,500
Variable direct materials cost per unit4.60
Variable direct labor cost per unit1.88
Variable factory overhead cost per unit1.13
Variable selling and administrative cost per unit4.50
The dollar amount of desired profit from the production and sale of the company’s product is: A. $175,000B. $67,200C. $73,500D. $96,000
92. Magpie Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% rate of return on invested assets of $700,000.
Fixed factory overhead cost$38,700
Fixed selling and administrative costs7,500
Variable direct materials cost per unit4.60
Variable direct labor cost per unit1.88
Variable factory overhead cost per unit1.13
Variable selling and administrative cost per unit4.50
The cost per unit for the production and sale of the company’s product is: A. $12.11B. $12.88C. $15D. $13.50
93. Magpie Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% rate of return on invested assets of $700,000.
Fixed factory overhead cost$38,700
Fixed selling and administrative costs7,500
Variable direct materials cost per unit4.60
Variable direct labor cost per unit1.88
Variable factory overhead cost per unit1.13
Variable selling and administrative cost per unit4.50
The markup percentage on total cost for the company’s product is: A. 21.0%B. 22.7%C. 15.8%D. 24.0%
94. Magpie Corporation uses the total cost concept of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% rate of return on invested assets of $700,000.
Fixed factory overhead cost$38,700
Fixed selling and administrative costs7,500
Variable direct materials cost per unit4.60
Variable direct labor cost per unit1.88
Variable factory overhead cost per unit1.13
Variable selling and administrative cost per unit4.50
The unit selling price for the company’s product is: A. $15.00B. $13.82C. $15.80D. $14.76
95. Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% rate of return on invested assets of $800,000.
Fixed factory overhead cost$82,000
Fixed selling and administrative costs45,000
Variable direct materials cost per unit5.50
Variable direct labor cost per unit7.65
Variable factory overhead cost per unit2.25
Variable selling and administrative cost per unit.90
The dollar amount of desired profit from the production and sale of the company’s product is: A. $105,840B. $225,000C. $96,000D. $220,500
96. Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% rate of return on invested assets of $800,000.
Fixed factory overhead cost$82,000
Fixed selling and administrative costs45,000
Variable direct materials cost per unit5.50
Variable direct labor cost per unit7.65
Variable factory overhead cost per unit2.25
Variable selling and administrative cost per unit.90
The cost per unit for the production of the company’s product is: A. $13.15B. $17.22C. $15.40D. $15.75
97. Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% rate of return on invested assets of $800,000.
Fixed factory overhead cost$82,000
Fixed selling and administrative costs45,000
Variable direct materials cost per unit5.50
Variable direct labor cost per unit7.65
Variable factory overhead cost per unit2.25
Variable selling and administrative cost per unit.90
The markup percentage on product cost for the company’s product is: A. 23.4%B. 10.98%C. 26.1%D. 18%
98. Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 45,000 units of its sole product. Mallard desires a profit equal to a 12% rate of return on invested assets of $800,000.
Fixed factory overhead cost$82,000
Fixed selling and administrative costs45,000
Variable direct materials cost per unit5.50
Variable direct labor cost per unit7.65
Variable factory overhead cost per unit2.25
Variable selling and administrative cost per unit.90
The unit selling price for the company’s product is: A. $19.35B. $15.75C. $22.05D. $21.26
99. Dotterel Corporation uses the variable cost concept of product pricing. Below is cost information for the production and sale of 35,000 units of its sole product. Dotterel desires a profit equal to a 11.2% rate of return on invested assets of $350,000.
Fixed factory overhead cost$105,000
Fixed selling and administrative costs35,000
Variable direct materials cost per unit4.34
Variable direct labor cost per unit5.18
Variable factory overhead cost per unit.98
Variable selling and administrative cost per unit.70
The dollar amount of desired profit from the production and sale of the company’s product is: A. $89,600B. $39,200C. $70,000D. $84,000
100. Dotterel Corporation uses the variable cost concept of product pricing. Below is cost information for the production and sale of 35,000 units of its sole product. Dotterel desires a profit equal to a 11.2% rate of return on invested assets of $350,000.
Fixed factory overhead cost$105,000
Fixed selling and administrative costs35,000
Variable direct materials cost per unit4.34
Variable direct labor cost per unit5.18
Variable factory overhead cost per unit.98
Variable selling and administrative cost per unit.70
The variable cost per unit for the production and sale of the company’s product is: A. $14.00B. $12.60C. $9.80D. $11.20
